scholarly journals In Search of the Optimal Saving Strategy for Pan-European Pension Products

2020 ◽  
Vol 11 (2) ◽  
pp. 54-72
Author(s):  
Ján Šebo ◽  
Daniela Danková ◽  
Ivan Králik
Keyword(s):  
Life Cycle ◽  
Risk Mitigation ◽  
Research Papers ◽  
Ongoing Debate ◽  
Two Factors ◽  
Fixed Proportion ◽  
Pension Saving ◽  
Life Cycle Saving ◽  
Optimal Saving ◽  
Good Risk

The introduction of pan-European pension products in 2020 is associated with an ongoing debate on prescribing predefined saving strategy that would both deliver adequate performance and limit the down-side risk at the end of the saving horizon. Dynamic life-cycle saving strategies are generally accepted as a good risk-mitigation tool that can be individually set. Many research papers confirm the ability of life-cycle strategies to deliver high risk-reward outcomes. Objective of our paper is to test the ability of one-factor life-cycle saving strategies based on the age and/or the remaining saving horizon to deliver the promised value for PEPP savers. We constructed 18 saving strategies divided into three groups – static saving strategies with fixed proportion of equities, dynamic life-cycle strategies based on the age and/or remaining saving horizon, and quasi-active strategies combining two factors – the remaining saving horizon and price movement. We employed the model based on moving-block bootstrapping technique and performed simulations for various economic conditions. We have tested the expected saving performance combined with the down-side risk during the saving horizon. Our findings do not confirm the general findings on life-cycle saving strategies. We claim that having the age as the only factor defining the proportion of equities in the pension saving portfolio would not be optimal. However, we found that two-factor saving strategies look promising in delivering both lower down-side risk and higher performance over the saving horizon.

scholarly journals IMPACT OF DIFFERENT LIFE-CYCLE SAVING STRATEGIES AND UNEMPLOYMENT ON INDIVIDUAL SAVINGS IN DEFINED CONTRIBUTION PENSION SCHEME IN SLOVAKIA

2021 ◽  
Vol 24 (3) ◽  
pp. 128-148
Author(s):  
Michal Mešťan ◽  
Ivan Králik ◽  
Leoš Šafár ◽  
Ján Šebo
Keyword(s):  
Life Cycle ◽  
Low Risk ◽  
Pension Scheme ◽  
Defined Contribution ◽  
Replacement Rate ◽  
Pension Schemes ◽  
Unemployment Risk ◽  
Life Cycle Saving ◽  
The Impact ◽  
Optimal Saving

Searching for the optimal saving strategy is often tied with the life-cycle strategies where only the age of a saver is considered for setting the allocation profile between equities and bonds. Our article contributes to the debate by looking at the performance and adequacy risks arising from applying age-based saving strategies for savers in funded pension schemes. As many studies have proven the shift of the risk onto savers in defined contribution pension schemes under various saving strategies, we contribute to the debate by providing simulations of expected accumulated savings via funded pension scheme under the various life-cycle income profiles and existence of unemployment risk. Using the resampling simulation technique, we compare the fixed and age-based strategies of three different agents with various life-cycle income paths and different unemployment risk. We compare the expected amount of savings and calculate relative indicators comparing the expected monthly benefits, income replacement rate. We look closely on the impact of unemployment on the value of savings and calculate the unemployment factor explaining the value of savings lost due to the periods of unemployment. By combining life-cycle income functions of individuals with different education level and unemployment risk, we show that decisions of implementing low risk saving strategies are suboptimal and lead to a substantial decrease in replacement ratios not only for higher income cohorts but especially for the lowest ones. At the same time, we prove that employing low risk saving strategy leads to the increase of adequacy risk especially driven by the unemployment risk that is higher for lower education individuals. We conclude that age-based life-cycle saving strategies, where the remaining saving horizon is the only factor defining the allocation profile is not the optimal saving strategy and other factors should be considered as well when searching for optimal saving strategy.

Probabilistic life cycle analysis model for evaluating electric power infrastructure risk mitigation investments

2010 ◽  
Vol 106 (1) ◽  
pp. 31-55 ◽  
Author(s):  
Royce A. Francis ◽  
Stefanie M. Falconi ◽  
Roshanak Nateghi ◽  
Seth D. Guikema
Keyword(s):  
Life Cycle ◽  
Electric Power ◽  
Life Cycle Analysis ◽  
Risk Mitigation ◽  
Analysis Model ◽  
Power Infrastructure

Larval and life-cycle patterns in echinoderms

2001 ◽  
Vol 79 (7) ◽  
pp. 1125-1170 ◽  
Author(s):  
Larry R McEdward ◽  
Benjamin G Miner
Keyword(s):  
Life Cycle ◽  
Free Living ◽  
Larval Body ◽  
Evolutionary Transitions ◽  
Developmental Patterns ◽  
Developmental Evolution ◽  
Larval Stages ◽  
Two Factors ◽  
Life Cycle Patterns ◽  
Life Cycle Evolution

We review the literature on larval development of 182 asteroids, 20 crinoids, 177 echinoids, 69 holothuroids, and 67 ophiuroids. For each class, we describe the various larval types, common features of a larval body plan, developmental patterns in terms of life-cycle character states and sequences of larval stages, phylogenetic distribution of these traits, and infer evolutionary transitions that account for the documented diversity. Asteroids, echinoids, holothuroids, and ophiuroids, but not crinoids, have feeding larvae. All five classes have evolved nonfeeding larvae. Direct development has been documented in asteroids, echinoids, and ophiuroids. Facultative planktotrophy has been documented only in echinoids. It is surprising that benthic, free-living, feeding larvae have not been reported in echinoderms. From this review, we conclude that it is the ecological and functional demands on larvae which impose limits on developmental evolution and determine the associations of larval types and life-cycle character states that give rise to the developmental patterns that we observe in echinoderms. Two factors seriously limit analyses of larval and life-cycle evolution in echinoderms. First is the limited understanding of developmental diversity and second is the lack of good phylogenies.

Private partner's risk response in PPP low-cost housing projects

2014 ◽  
Vol 32 (1) ◽  
pp. 67-94 ◽  
Author(s):  
Surangkana Trangkanont ◽  
Chotchai Charoenngam
Keyword(s):  
Life Cycle ◽  
Risk Mitigation ◽  
Low Cost ◽  
Response Strategy ◽  
Private Firms ◽  
Content Type ◽  
Risk Response ◽  
Project Life Cycle ◽  
Low Cost Housing ◽  
Project Life

Purpose – The purpose of this paper is to identify the salient risks borne by private firms and to investigate their effective risk response strategies in public-private partnership (PPP) low-cost housing (LCH) projects in Thailand. Design/methodology/approach – The paper employs grounded theory and case study methodologies to extensively analyze ten private firms’ risks and their strategic risk mitigation. As a result, the matrix of imperative risks’ root causes and the area of the project life cycle most exposed to their impacts were proposed. This included the framework of the risk response strategy application. Findings – The private firm's risk mitigation strategies depended on the salient risks’ impact and the private firms’ predictability and controllability of the risk outcome. This included the private firm's participating objectives and core business, decision maker's risk attitude, risk perception, experience of risk, and risk assessment skill, and the project life cycle phase of risk occurrence. Practical implications – Under the same characteristics of the immature PPP market in developing countries, the contractors’ effective risk management framework can be used as a guideline to complement the contractors’ decision making on risk response strategy selection and resource allocation in the PPP project life cycle. Originality/value – Despite working under the familiar environment of construction risk and generous payment method in PPP-LCH projects, only few contractors were successful. The examination of risks borne and effectively responded by the private sector increases the likelihood of the project success.

Trade surpluses and life-cycle saving behaviour

1999 ◽  
Vol 65 (2) ◽  
pp. 227-237 ◽  
Author(s):  
Tryggvi Thor Herbertsson ◽  
Gylfi Zoega
Keyword(s):  
Life Cycle ◽  
Life Cycle Saving
Sign in / Sign up

Export Citation Format

Share Document